Steelcase
Inc.
Notes
to Consolidated Financial Statements
Note 16
Unaudited Quarterly Results
The following sets forth summary unaudited information on a quarterly basis for the Company:
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| 1998 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total |
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| Net sales | $663.2 | $695.3 | $702.0 | $699.5 | $2,760.0 |
| Gross profit | 241.5 | 259.9 | 242.6 | 259.4 | 1,003.4 |
| Operating income | 76.9 | 99.2 | 68.8 | 72.5 | 317.4 |
| Net income | 47.2 | 66.3 | 49.8 | 53.7 | 217.0 |
| Basic and diluted earnings per share | 0.30 | 0.43 | 0.32 | 0.35 | 1.40 |
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| 1997 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total |
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| Net sales | $572.2 | $579.9 | $623.0 | $633.3 | $2,408.4 |
| Gross profit | 197.6 | 205.5 | 221.3 | 232.4 | 856.8 |
| Operating income (loss) | 51.1 | 45.4 | (21.8) | 66.9 | 141.6 |
| Net income (loss) | 36.7 | 30.9 | (76.4) | 36.5 | 27.7 |
| Basic and diluted earnings per share | 0.24 | 0.20 | (0.50) | 0.24 | 0.18 |
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During the second quarter of 1998, the Company received a net litigation settlement in the amount of $9.8 million. In addition, during the third quarter of 1998, the Company incurred incremental costs in the aggregate amount of $15.8 million related to furniture distribution process changes, the restructuring and disposition of a non-furniture related manufacturing facility, the relocation of a showroom facility and certain manufacturing equipment write-offs. Finally, during the fourth quarter of 1998, the Company incurred incremental costs of $7.6 million related to the Employee Stock Grant and the initial public offering.
During the second quarter of 1997, one of the Company’s subsidiaries recorded a restructuring charge, including an intangible asset write-off, aggregating approximately $8.6 million. In addition, during the third quarter of 1997, certain patent litigation was resolved. See Note 11 to the Consolidated Financial Statements.
